PSC conducts the Public Hearings on Government's Compliance with the 30 days payment period to Service Providers

Friday, 14 September 2012

The Public Service Commission (PSC) will be conducting a series of the public hearings with relevant stakeholders on government’s compliance with the 30 days payment period to service providers in Free State, Eastern Cape, Gauteng and Limpopo provinces. The public hearings will provide an overview of the challenges experienced by government departments in the payment of service providers where government functions have been outsourced. The hearings will also create a forum for proper consultation and public participation with relevant stakeholders with regard to the matter.

Section 38 (1)(f) of the Public Finance Management Act (PFMA), 1999, requires Accounting Officers (AOs) to settle all contractual obligations and pay all money owing, including inter-governmental claims, within the prescribed or agreed period. The National Treasury Regulation (NTR) 8.2.3 also clarifies the “prescribed period” by determining that “all payments due to creditors must be settled within 30 days from receipt of an invoice or, in the case of civil claims, from the date of settlement or court judgment”. However, the 30 days payment of invoices still remains a challenge.

As part of consultation with relevant stakeholders ahead of the provincial hearings, on 14 September 2012, the PSC held a meeting with organised business at national level to discuss the challenges and experiences faced by the service providers on government’s compliance with the 30 days payment period to service providers. Representatives from the Black Business Council, Business Unity South Africa, South African Enterprise Development Agency, South African Chamber of Commerce and Industry, Foundation for African Business and Consumer Services, Ulwazi Group, and National Treasury amongst others attended the meeting.

Organised business applauded the PSC for undertaking the public hearings and committed to provide support during the hearings. They however, expressed frustration by government departments’ failure to pay service providers on time. “Failure to pay service providers timeously impacts on amongst others, enterprise development, transformation, skills development and job creation”, said organised business.

In concluding the meeting, the PSC welcomed organised business’ support to the hearings and affirmed the PSC’s commitment to uncover reasons for non-compliance by government departments to pay service providers within a regulatory timeframe of 30 days. The PSC also mentioned that upon conclusion of the hearings, it will compile a report that will propose measures for improvement.

The PSC will kick-start the first in a series of its hearings in the following five districts in Free State province:
 

Province	District	Venue	Date	Time
Freestate	Mangaung	Indaba Auditorium Glass Palace, Cnr Nelson Mandela and Markgraaf Bloemfontein	21 September 2012	08:00- 16:00
Freestate	Thabo Mofutsanyane	District Council Chamber Setsing Business Centre, Cnr Moremoholo and Motloung	25 September 2012	08:00- 16:00
Freestate	Fezile Dabi	Mafube Municipality Town Library Municipal Offices, 64 JJ Hadebe	26 September 2012	08:00- 16:00
Freestate	Lejweleputswa	District Speaker’s Boardroom, Cnr Hofmeyer and Tempest	27 September 2012	08:00- 16:00
Freestate	Xhariep	District Office Auditorium, 24 Kerk Street Trompsburg	28 September 2012	08:00- 16:00

Issued by the Public Service Commission

For enquiries, please contact:
Mr Humphrey Ramafoko; Director: Communication and Information Service; Tel: 012- 352 1196; Cell: 082 782 1730;
Email: humphreyr@opsc.gov.za; Or Mr Ricardo Mahlakanya; Deputy Director: External Communication; Tel: 012- 352 1070;
Cell: 079 769 7955; Email: RicardoM@opsc.gov.za

 

National Anti-Corruption Hotline: 0800 701 701